Clayton Williams Energy Announces Third Quarter Results
MIDLAND, Texas, Oct. 28 /PRNewswire/ -- Clayton Williams Energy, Inc. (Nasdaq:CWEI) announced today net
income for the third quarter of 1997 of $1.1 million, or $.12 per share, on revenues of $19.9 million, compared to
net income of $3.5 million, or $.45 per share, on revenues of $15.6 million for the same period in 1996.
Discretionary cash flow (net income before exploration costs, depreciation, depletion and amortization and
impairments) increased 43% to $13.7 million in 1997 from $9.6 million in 1996.
The decrease in net income was due primarily to higher exploration costs and DD&A expense, offset in part by
higher oil and gas sales. The Company, which utilizes the successful efforts method of accounting, expensed $3.9
million of exploration costs during the third quarter of 1997, substantially all of which was attributable to 3-D
seismic surveys on exploratory projects. The increase in DD&A expense resulted primarily from increased oil and
gas production.
Oil production was 57% higher during the current quarter as compared to the third quarter of 1996 due primarily to
strong production performance from wells completed in the northern portion of the North Giddings Block. The
Company produced an average of 8,913 net barrels of oil per day during the third quarter of 1997, as compared to
5,663 net barrels of oil per day during the third quarter of 1996.
The Company completed its Cotton Valley 3-D seismic survey in Robertson County, Texas during the third quarter
of 1997 and is currently processing this data. The Company expects to begin interpreting the results of the survey
during the fourth quarter of 1997, with any drilling commencing no sooner than the first quarter of 1998.
The Company previously reported two farm-in agreements covering approximately 50,000 acres through the
Georgetown formation near its North Giddings Block. Initial results from wells drilled on this acreage have been
positive, and the Company plans to continue drilling in these areas.
The Company continues to evaluate the southern portion of its North Giddings Block. Initial drilling results in this
area have not met expectations. The results of the Company's initial infill drilling in the northern portion of its North
Giddings Block have been successful, and it is anticipated additional locations will be added. Drilling levels in the
Giddings field area for 1998 will be determined based on results of drilling in the farm-in acreage, the infill drilling,
and the results of the evaluation of the southern portion of the block.
The Company previously reported its increased exploration efforts in Mississippi, Louisiana and south Texas in
areas where the Williams Companies have explored for oil and gas in the past. In connection with its Mamou
prospect, a deep Louisiana Wilcox test, the Company encountered structure and oil shows in two shallow
formations, but discontinued drilling to the deeper horizons as the well ran low with depth. The Company is
currently setting pipe and will be attempting to complete the well in the Sparta and Upper Wilcox formations. Future
tests of deeper formations in this project have not been ruled out. 3-D seismic studies have been completed on
acreage in south Texas and in the oil producing salt domes of Mississippi. The Company is currently evaluating the
results of these surveys.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Certain statements contained herein constitute ''forward-looking statements'' within the meaning of the Private
Securities Litigation Reform Act of 1995 (the ''Reform Act''). Such forward-looking statements involve known and
unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements
of the Company to be materially different from any future results, performance, or achievements expressed or
implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil
and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability
of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks,
competition, government regulation, the ability of the Company to implement its business strategy, and other factors
referenced in the Company's public filings with the Securities and Exchange Commission.
CLAYTON WILLIAMS ENERGY, INC.
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
(Unaudited) (Unaudited)
STATEMENT OF OPERATIONS:
REVENUES
Oil and gas sales $18,718 $14,619 $51,538 $42,136
Natural gas services 1,207 965 3,374 2,914
Total revenues 19,925 15,584 54,912 45,050
COSTS AND EXPENSES
Lease operations 3,917 3,647 11,847 10,808
Exploration:
Abandonments and impairments 28 140 750 406
Seismic and other 3,920 96 7,451 109
Natural gas services 1,070 792 2,849 2,363
Depreciation, depletion and
amortization 8,611 5,891 22,561 17,743
Impairment of property and
equipment --- --- --- 1,186
General and administrative 806 728 2,767 2,399
Total costs and expenses 18,352 11,294 48,225 35,014
Operating income 1,573 4,290 6,687 10,036
OTHER INCOME (EXPENSE)
Interest expense (480) (840) (1,271) (2,783)
Other 14 20 109 60
Total other income (expense) (466) (820) (1,162) (2,723)
INCOME BEFORE INCOME TAXES 1,107 3,470 5,525 7,313
INCOME TAX EXPENSE --- --- --- ---
NET INCOME $1,107 $3,470 $5,525 $7,313
Net income per common share $ .12 $ .45 $ .61 $ .96
Weighted average common shares
outstanding (in thousands) 9,088 7,668 9,093 7,588
OTHER OPERATING DATA:
Discretionary cash flow:
Total $13,666 $9,597 $36,287 $26,757
Per common share $1.50 $1.25 $3.99 $3.53
Net production:
Oil (MBbls) 820 521 2,102 1,601
Gas (MMcf) 1,293 1,367 3,790 4,183
MBOE 1,036 749 2,734 2,298
Average sales price:
Oil ($/Bbl) $19.11 $21.19 $20.00 $19.76
Gas ($/Mcf) $2.44 $2.62 $2.52 $2.48
September 30, December 31,
1997 1996
(Unaudited)
CONDENSED BALANCE SHEET:
Current assets $15,107 $15,962
Property and equipment, net 104,499 87,561
Other assets 83 75
Total assets $119,689 $103,598
Current liabilities $21,211 $19,384
Long-term debt 27,500 18,000
Stockholders' equity 70,978 66,214
Total liabilities and stockholders' equity $119,689 $103,598 |
